Perris Crossing [email protected] [email protected] CA Lic
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Net Leased Investment Group Exclusively Offered by: OFFERING MEMORANDUM Chuck Klein Kevin Held 858.546.5473 858.546.5428 Perris Crossing [email protected] [email protected] CA Lic. 01522766 CA Lic. 01240358 3150 Case Road, Perris, California 92570 Perris Crossing Disclaimer Cassidy Turley BRE Commercial (hereinafter “CT”) has been retained as the exclusive advisor and broker regarding the sale of Pad B within the Perris Crossing Shopping Center property located in Perris, California (the “Property”). This Offering Memorandum has been prepared by CT for use by a limited number of parties and does not purport to provide a necessarily accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective investors may need or desire. All projections have been developed by CT, the Owner, and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and, therefore, are subject to variation. No representation is made by CT or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, CT, Owner, and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omission from, this Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. This Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the package. Analysis and verification of the information contained in this package is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the Property will be made available upon written request to interested and qualified prospective investors. Owner and CT each expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers regarding the Property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligation to any entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase of the Property has been fully executed, delivered, and approved by Owner and its legal counsel, and any conditions to Owner’s obligations thereunder have been satisfied or waived. CT is not authorized to make any representations or agreements on behalf of Owner. This Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein are called the “Contents”), are of a confidential nature. By accepting the package, you agree (i) to hold and treat it in the strictest confidence, (ii) not to photocopy or duplicate it, (iii) not to disclose the package or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or CT, (iv) not use the package or any of the contents in any fashion or manner detrimental to the interest of Owner or CT, and (v) to return it to CT immediately upon request of CT or Owner. If you have no further interest in the Property, please return this Offering Memorandum forthwith. 4350 La Jolla Village Drive, Suite 500, San Diego, CA 92122 | 858.546.5400 | Fax: 858.630.6320 www.brecommercial.com Information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. B Perris Crossing Table of Contents I EXECUTIVE SUMMARY ............................................. 1 Offering Terms Investment Highlights II FINANCIAL ANALYSIS .............................................. 3 Annual Operating Pro Forma Rent Roll III PROPERTY DESCRIPTION ........................................ 5 Property Photos Site Plan Map Aerial Parcel Map IV TENANT INFORMATION ......................................... 11 Tenant Profiles V MARKET INFORMATION ......................................... 14 Interstate 215 Competition Map Area Information Demographics Information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. C Perris Crossing Executive Summary Offering Terms Location: NWQ of Interstate 215 & Ethanac Road Perris, Riverside County, California Address: 3150 Case Road Perris, CA 92570 Zoning: RC (Retail Commercial) Tenants: Starbucks, Los Primos Mexican Food, Subway, Ono Hawaiian BBQ Year Built: 2007 Rentable Square Feet: ~7,033 square feet Total Land Area: ~1.15 acres Percent Leased: 100% leased Pro Forma NOI: ~$307,642 Price: $4,121,807 Cap: 7.46% Information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. 1 Perris Crossing Investment Highlights Prime Freeway Adjacent Location: Located on the NWQ of Interstate 215 and Ethanac Road with traffic counts in excess of 75,000 cars per day and excellent visibility to both Interstate 215 and 79 Freeway. New Power Center With Strong National Co-Tenancy Perris Crossing is anchored by a new Home Depot and WinCo Foods, complemented by a synergistic mix of pad and shop tenants including Bank of America, Walgreens (planned), Carl’s Jr., Del Taco, Circle K, Starbucks, and Subway. Destination / Regional Retail Hub New retail epicenter drawing consumers from a large geographic region including both Perris and the surrounding communities. Strong Anchor Sales Anchor tenant sales are above projections and strong, making Perris Crossing a dominant power center in the trade area. Contact Listing Broker for more details. Credit Tenants with Corporate Signatures Starbucks amd Subway are corporate leases. NNN Leases with Increases / Growing Income Stream Annual rent increases in the majority of the leases provide for a growing income stream throughout the holding period. 35 Acre Big League Dreams Sports Park - Major Regional Sports Draw The subject property is situated across I-215 from a 35-acre “Big League Dreams” sports park, which is under construction. When completed, this facitily will include six baseball/softball fields, two indoor arena soccer fields, and two open turf fields. Four of the baseball fields are “replica” fields which are scaled down versions of major league stadiums. Information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. 2 Perris Crossing Annual Operating Pro Forma Year Count Per RSF 1 2 3 4 5 6 7 8 9 10 11 Fiscal Year Ending - May FYE 2013 FYE 2013 FYE 2014 FYE 2015 FYE 2016 FYE 2017 FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 Occupancy Percentage 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Operating Receipts Rental Receipts $44.23 $311,103 $323,845 $326,863 $330,742 $336,490 $344,114 $354,277 $368,176 $380,101 $386,765 $395,430 Operating Disbursements Recoverie 11.09 77,994 79,928 81,914 83,952 86,044 88,187 90,388 92,642 94,956 97,331 99,773 Total Operating Receipts 55.32 389,097 403,773 408,777 414,694 422,534 432,301 444,665 460,818 475,057 484,096 495,203 Operating Disbursements Common Area Expenses -1.08 -7,596 -7,824 -8,058 -8,300 -8,549 -8,805 -9,070 -9,342 -9,622 -9,911 -10,208 Shop Expenses -3.19 -22,435 -23,108 -23,802 -24,516 -25,251 -26,009 -26,789 -27,593 -28,420 -29,273 -30,151 Commercial Liability Insurance -0.04 -281 -290 -298 -307 -317 -326 -336 -346 -356 -367 -378 Shops Property Insurance -0.52 -3,657 -3,767 -3,880 -3,996 -4,116 -4,240 -4,367 -4,498 -4,633 -4,772 -4,915 Management Fee -0.41 -2,884 -2,970 -3,059 -3,151 -3,245 -3,343 -3,443 -3,546 -3,653 -3,762 -3,875 Property Taxes -6.34 -44,602 -45,494 -46,404 -47,332 -48,279 -49,244 -50,229 -51,234 -52,258 -53,304 -54,370 Total Operating Disbursements -11.58 -81,455 -83,453 -85,501 -87,602 -89,757 -91,967 -94,234 -96,559 -98,942 -101,389 -103,897 Net Operating Income $43.74 $307,642 $320,320 $323,276 $327,092 $332,777 $340,334 $350,431 $364,259 $376,115 $382,707 $391,306 Information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. 3 Perris Crossing Rent Roll Square % of Start End Recovery Management Rental Monthly Annual Monthly Renewal Tenant Suite Feet Project Date Date Type Fee Increase Rent Rent PSF Rent PSF Options Comments Starbucks H-1 1,751 24.90% 10/22/2007 12/31/2017 NNN 10% of CAM, $6,303.58 $43.20 $3.60 (2) 5-year at The analysis assumes the tenant exercises excluding 1/1/2013 $7,059.42 $48.38 $4.03 $7,907.25/month their renewal options.